2.

0 Background of Company (CIMB Bank)

2.1 History (CIMB 2013)

CIMB Group is a leading ASEAN universal bank, the largest Asia Pacific (ex-Japan)
investment bank and one of the world's largest Islamic banks.
The Group is headquartered in Kuala Lumpur, Malaysia and offers consumer
banking, wholesale banking, Islamic banking and asset management. It is the fifth largest
banking group by assets in Southeast Asia and at the end of June 2013 had over 40,000 staff
and approximately 13 million customers.
The Group's retail banking branch network is the widest in the region, with 1,060
retail branches in Malaysia, Indonesia, Singapore, Thailand and Cambodia.
The Group has substantial wholesale banking operations. Its corporate banking and
treasury markets business offers one of the most comprehensive and integrated product and
service suites among universal banks in ASEAN. Its investment bank is the largest in Asia
Pacific (ex-Japan) with offices in ASEAN's main markets and in Bahrain, Colombo, Hong
Kong, Melbourne, Mumbai, Shanghai, Seoul, Sydney and Taipei. In addition it has equity
sales operations in London and New York.
Products and services are complemented by partnerships and alliances with various
leading companies including the Principal Financial Group, Bank of Tokyo-Mitsubishi UFJ,
Sun Life Assurance, Allianz Insurance, Thai Life Insurance, Sri Ayudhya General Insurance,
and Mapletree Investments.
The Chief Executive Office and Group Managing Director of CIMB is Dato Sri
NazirRazak, one of Asias 50 most influential figures of the last decade (1996-2006) by
FinanceAsia magazine in 2006. He received the 2012 Outstanding Achievement Award
from the Euromoney Awards for Excellence 2012, in recognition of his outstanding
contribution to Asian financial markets, Best CEO for Investor Relations in the Malaysia
Investor Relations Awards 2012 and Asian Corporate Director Recognition Award in the
Asian Corporate Director Recognition Awards 2012.

He is also a member of the Investment Panel and Chairman of the Investment Panel
Risk Committee of the Employees Provident Fund. He holds directorships in various CIMB
Group companies, Malaysian Electronic Payment System (1997) SdnBhd and is an Executive
Committee member of the Malaysia International Islamic Financial Centre. He is Trustee of
the Rahah Foundation and the Pride Foundation.

2.2 Companys Mission / Vision / Values & Objectives (CIMB 2013)

Vision: To be the leading ASEAN Company
Mission: To provide universal banking services as a high-performing, institutionalized and
integrated company located in ASEAN and key markets beyond, and to champion the
acceleration of ASEAN integration and the regions links to the rest of the world.
Values:
Customer-centric
-

We exist to serve our customers and we sell products and services that our customers
understand and value.

High performance
-

We work hard and we work strategically for customers, staff and other stakeholders.

Enabling people
-

We empower and align our people to innovate and deliver value in their workplace as
well as for the community they serve.

Strength in diversity
-

We have respect for different cultures, we value faired perspectives and we recognize
diversity as a source of strength.

Integrity
-

We are honest, respectful and professional in everything we do because integrity is

the founding value of CIMB Group.

6 main Principles of CIMB Bank (CIMB 2013)

to avoid conflict of interest
These includes outside financial interests, other business interests, other employment,
entertainment and gifts, corporate directorships, trusteeships.

 to avoid misuse of position

These include the use of the institutions name or facilities for personal advantage, or
speculation in commodities, gold, silver, foreign exchange or securities.
to prevent misuse of information
These includes a prohibition on dealing in securities of any company listed or pending
listing where there is privileged information that would likely bring about a material change
in the market price of the shares or other securities of the company if that information was
publicly available. Also a prohibition on using insider information to influence another
person to deal in the shares or securities concerned, and a prohibition on communicating such
information to any other person who does not require such information in discharging their
duty.
to ensure integrity of records and transactions
These includes a responsibility that accounting records and reports must be complete and
accurate, must not obscure the true nature of any transaction and must not mislead on true
authorisation limits or approvals by relevant authorities. in addition, the spirit and letter of
relevant legislation must be strictly observed, and all records and files of the financial
institution must be accessed and used only for management approved purposes.
to ensure confidentiality of communication and transactions
These includes a responsibility to maintain the confidentiality of relations and dealings
with customers and take every precaution to protect the confidentiality of customer
information and transactions and ensure that secrets, copyright material, correspondence,
accounts and dealings are not disclosed, except when disclosure is required by law, and are
not used in any way for personal gain.
to ensure fair and equitable treatment
This includes a responsibility that all business dealings with current and potential
customers, with other members of staff or with those who may have cause to rely on the
financial institution, be conducted fairly and equitably. Any transactions with insiders or
related interests should be avoided, and if they go ahead, must be in full compliance with the

law, judged on normal business criteria basis and be fully documented and duly authorized by
the Board of Directors or an independent party.

CRM part

Customer Relationship Management (CRM) begins with the concept relationship

marketing introduced by Berry in 1983 to attract and to maintain the relationships between
customers and organizations. Discussion about relationship marketing begins in the 1960s
where the authors studied on consumers brand loyalty and store loyalty. Later, in the late
1970s researchers focus on industrial marketing and marketing channel to develop a
framework and the theories are based on two groups of relationships; as buyer and seller
(Moller and Halinen, 2000). The evolutions of marketing philosophy in the relationship
between customers and organizations change the term relationship marketing to Customer
Relationship Management (CRM).
CRM as a process of acquiring retaining and growing profitable customers and
business strategy that aims to understand, anticipate, manages the needs of an organizations
current and potential customers.
According to Ryals and Payne (2001), CRM is a management approach that use information
technology (IT) to build a long term relationship with their customers and at the same time
channel more profits to the organizations. Chen and Ching (2004) described CRM as a long
term relationship that use customer database to identify which customer can give more profits
to the organizations. Mylonakis (2009) recognized CRM as an innovative process to create a
long term relationship with customers in order to get trust from customers towards
organizations. Therefore, CRM is a comprehensive strategy and process which focus to
establish, maintain and enhance relationship with customers and to create value for the
organizations (Jham and Kalem, 2008).

CRM had been applied in areas such as banking, retail, insurance, communication and
education. How far the practices of CRM in the banking sector which focus on providing
service to their customers are yet to be seen? Banking sector is a customer oriented services
where customer is the main focus. Therefore research is needed in this sector to understand
more on customers need and their attitude so as to build a long term relationship with banks.
Based on previous studies, the study on the relationship between customers and banks in
Malaysia is still lacking comparing the others country as well as Europe, United Kingdom,
United State, and Australia (Jham and Kaleem, 2008). In this respect, researcher will study on
CRM practices among banks from customers perspectives focusing in Kuala Terengganu
which is situated on the East Coast of Peninsular Malaysia.
The objective of the study is to investigate the Customer Relationship Management practices
among banks from the customers perspectives. Specifically the objectives are:

To examine CRM practices among banks from the customers perspectives.

To determine which CRM dimensions are most important in banking sector.

To identify whether there are gender differences in the perception of CRM practices.

There are three research questions to be answered in this study as follows:

What is customer perception on CRM practices among banks?

What are the most important CRM dimensions in banking sector?

Are there any significant differences in terms of gender towards CRM practices?

The rst of our ve CIMB Group Values is that we are customer-centric. We exist for our
clients and customers and we sell products and services that our clients and customers
understand and value. Even ancillary activities such as securities trading are developed with
the ultimate objective of enhancing the quality of products and services we can serve our
clients and customers.